Odfjell SE : Odfjell SE : Continuing weak chemical tanker market and still significant losses at Odfjell Terminals (Rotterdam)

  Odfjell SE : Odfjell SE : Continuing weak chemical tanker market and still
             significant losses at Odfjell Terminals (Rotterdam)

EBITDA of USD 17 million reflects both a continued weak chemical tanker market
and still significant losses at Odfjell Terminals (Rotterdam).

The chemical tanker market  improved seasonally towards the  end of the  year. 
Volumes shipped  remained on  par with  the previous  quarter. Earnings  on  a 
time-charter basis were up 7.8% compared  to third quarter. Freight rates  per 
tonne shipped increased by about 10%.  The average price on bunkers  purchased 
in the quarter remained high.

In fourth quarter, with the exception of Odfjell Terminals (Rotterdam)  (OTR), 
the EBITDA  for our  tank terminals  remained on  par compared  with  previous 
quarter. In December we  announced that we  had signed of  a Letter of  Intent 
with Lindsay Goldberg LLC to expand the existing joint venture to  essentially 
include all  of our  tank  terminal business.  The proposed  transaction  will 
significantly increase the  capitalization of the  tank terminal division  and 
will enable  us to  jointly  embark on  an  ambitious and  accelerated  growth 
strategy.

OTR has reached agreements in principle with the Unions and the Works  Council 
with the objective  of finalizing  the negotiations  regarding downsizing  and 
reorganisation of the work force.

The re-commissioning project at  OTR is slightly  delayed relative to  earlier 
plans. 717,000 cbm  is approved  for usage  per end  of January  2013. We  now 
expect 1.2 million cbm to be available for commercial use by end of Q2 2013.

The supply/demand picture within the chemical tanker segment continues to move
in our  favour. However,  favourable  yard prices  and modern  fuel  efficient 
designs may lure investors  to contract new tonnage.  The supply overhang,  on 
the other hand,  may be  prolonged due to  reversal of  lost capacity  through 
slow-steaming and low utilisation.

Our main concerns relate to challenging markets also in 2013, high fuel  costs 
and potential setbacks  in the global  economy. On the  tank terminal side  we 
have witnessed higher activities and inquiries for storage. We expect improved
earnings in our tank terminal division in the first quarter of 2013.

Please find the full 4th quarter 2012 Report and Presentation attached.

For more information please contact:
Jan A. Hammer, President/CEO Odfjell SE
Tel.: + 47 55 27 00 00
E-mail: jan.hammer@odfjell.com

or

Terje Iversen, CFO Odfjell SE
Tel.: + 47 55 27 00 00
E-mail: terje.iversen@odfjell.com

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
4Q Presentation 2012
4Q Report 2012

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Source: Odfjell SE via Thomson Reuters ONE
HUG#1678016
 
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